A-share market closing review | Liquor suddenly surges! Maotai hits the daily limit, market welcomes three major signals of change.

Today, the market differentiation is obvious, with traditional blue-chip stocks such as liquor and real estate seeing significant gains, leading the Shanghai 50 Index to surge. Semiconductor and chip technology stocks are weakening, with the Science and Technology Innovation 50 and Growth Enterprise Board Index showing significant declines. The market turnover for the day reached 3.2 trillion, with over 200 billion more than the previous trading day, and over 3500 stocks in both markets fell. According to Chinese securities firms, three major signals of change have emerged in the market: First, real estate and liquor stocks are performing well together. When sectors rotate to assets like real estate and liquor for supplementary gains, structural volatility in the market may increase. Second, commodities including gold have been surging recently, while virtual currencies reflecting liquidity have been relatively subdued. Inflation expectations may become a major variable for AI and computational power. Third, as inflation expectations are triggered, the performance of government bonds has been surprising. Recently, the 30-year government bond futures have shown significant strength, and the logic is still complex, indicating that rotation may not be at a "either this or that" stage yet. On the market, hotspots are rotating rapidly, with liquor, retail, and other consumer stocks rising in the afternoon. Kweichow Moutai surged by 8%, Wuliangye Yibin and other stocks hit the limit-up. Precious metals, oil and gas, and other resource stocks continued to rise after major fluctuations, with China National Gold Group Gold Jewellery hitting the limit for 5 consecutive days, and Hunan Gold Corporation hitting the limit for 4 consecutive days. AI application concept stocks surged, with Guangdong Insight Brand Marketing Group and Beijing Quanshi World Online Network Information hitting the limit. The banking sector rose, with BQD hitting the limit. Real estate stocks rebounded significantly, with stocks like Grandjoy Holdings Group hitting the limit. On the downside, semiconductor, military, and automotive stocks led the declines. Looking ahead, Orient believes that in the short term, the stock index will continue to fluctuate, but signs of control are evident during the session, making significant gains or losses unrealistic. The Shanghai Composite Index is expected to continue its upward trend, but the space before the Spring Festival is limited. In terms of individual stocks, there were 1803 gainers and 3566 decliners in the two markets, with 107 stocks maintaining their uptrend. There were 89 stocks hitting limit-up and 36 stocks hitting limit-down. At the close, the Shanghai Composite Index rose by 0.16% to 4157.98 points, with a turnover of 148.58 billion yuan; the Shenzhen Component Index fell by 0.30% to 14300.08 points, with a turnover of 174.42 billion yuan. The Growth Enterprise Board Index fell by 0.57% to 3304.51 points. Capital Flow Today, the main funds focused on advertising marketing, software development, liquor, and other sectors. Stocks that saw significant net inflows from main funds included BlueFocus Intelligent Communications Group, Kweichow Moutai, Iflytek Co., Ltd., etc. News Review 1. World Gold Council: Strong trend of gold investment demand in the Chinese market in the first quarter of 2026 may continue The World Gold Council released the 2025 annual "China National Gold Group Gold Jewellery Demand Trends Report." The report indicates that in the first quarter of 2026, the strong trend of gold investment demand in the Chinese market may continue: consumer self-reward type purchases and gifting demands before the Spring Festival are expected to provide support. In 2026, given the continued evolution of global and regional geopolitical situations and uncertainties in economic growth, the demand for hedging will remain high. The report believes that gold investment may continue to be stable and strong. 2. NVIDIA, Microsoft, and Amazon are negotiating to invest up to $60 billion in OpenAI According to sources, OpenAI is raising a large amount of funds from some of its major technology partners, as it seeks to raise up to $100 billion to meet the growing demands of its artificial intelligence business. NVIDIA, Amazon, and Microsoft are discussing investing up to $60 billion in OpenAI. NVIDIA, as an existing investor, provides computational support for OpenAI's AI models with its chips, and is currently negotiating an investment of up to $30 billion. 3. China Aerospace Hi-Tech Holding Group: Planning to promote development in new areas such as space tourism and space smart infrastructure China Aerospace Hi-Tech Holding Group announced today (29th) that during the "14th Five-Year Plan" period, it will plan to promote development in new areas such as space tourism, space smart infrastructure, space resource development, and space traffic management. Accelerate the iteration and formation of sub-orbital and orbital space tourism spacecraft products, complete related unmanned or manned flight verification, establish a complete space tourism operation system, achieve sub-orbital space tourism flight operations, and gradually develop orbital space tourism. Build gigawatt-level space smart infrastructure, create a new space system architecture integrating cloud, edge, and end, achieve deep integration of computing power, storage capability, and transportation capability, empower "sky counting day computing", "land counting day computing", and "sky and land counting". Market Outlook 1. Industrial: Although the market rhythm is slowing down, the upward trend continues Industrial believes that although the market rhythm is slowing down, the upward trend continues, and the profitability effect is spreading to a wider range structurally. In terms of allocation, with the disclosure of annual report forecasts of A-share listed companies reaching a peak, combined with the concentrated disclosure of financial reports of North American technology giants, performance may have a more significant impact on the structure, so the focus should continue to be on fundamentals to uncover highlights. Combining clues from annual report performance forecasts and recent marginal improvements in profit expectations, industries with bright spots and lower gains in this round are mainly concentrated in AI hardware (North American computational power, consumer electronics), batteries, pharmaceuticals, steel, and non-financial sectors. 2. Huatai: The index still has strong resilience in the midst of volatility Huatai believes that the January market is coming to an end, with the market showcasing a strong start this month. The first quarter could be one of the few bullish periods this year. Currently, the weakening US dollar poses little restraint on domestic easing in the short term, and loose liquidity will continue to support the market. The index still has strong resilience in the midst of volatility. Adjustments in crowded sectors like commercial aerospace in the previous period could bring room for capital movement, pushing hotspots to expand into more fields. From early February to the Spring Festival, if the previous sector expansion forms a clear profitability effect, it will further attract incremental funds. Market sentiment and funding are resonating, and the spring market is expected to enter a climax stage. 3. Orient: Short-term stock index fluctuation pattern remains unchanged Orient believes that in the short term, the stock index's fluctuating pattern remains unchanged, but signs of control are evident during the session, making significant gains or losses unrealistic. The Shanghai Composite Index is expected to continue its upward trend while facing constraints before the Spring Festival. Under the influence of multiple factors such as geopolitical conflicts, tariff disturbances leading to increased risk aversion sentiment, a weakening US dollar, and central bank gold purchases, international gold prices are soaring. The recent speculation in the non-ferrous metals sector is the result of the combined work of multiple positive factors, but after rapid price increases, especially when the "price increase-stock price increase" dynamic is no longer mutually supportive, the sector may face fluctuations.